Genesis Energy, L.P. (NYSE:GEL) Q1 2024 Earnings Call Transcript

So if you get to at 4.8 million tons of the total production capability and sales at combined Westvaco as well as expanded Granger only at its designed capacity, you’re at $240 million run rate business. If you get to the $60 that’s why you approach $300 million and if you believe that any of these growth projects that are being bandied around that are going to cost at least $1,000 a ton per installed ton of production capacity they’re going to have to earn $100 margin just to get a simple return of 10% on investment, while they may have a slight cost advantage of $20 or $30 a ton that would indicate that if they go forward and we’re looking at $70 to $80 per ton margins in order to equivalent to us that would put business in the $350 million, $400 million range.

So that’s why we think that the long-term thesis around the soda ash is extraordinary and exciting. And, notwithstanding, the truck pricing environment where the 65 million metric ton market had to absorb five million tons of incremental production but the things work out over time.

Wade Suki: That’s perfect. Very helpful. Thank you so much. Appreciate it.

Grant Sims: Thank you.

Operator: Thank you. [Operator Instructions] There are no further questions at this time. Mr. Sims back to you.

Grant Sims: Thank you very much and I appreciate everybody listening in and good questions and we’ll talk in another 90 days or so if not sooner. So thanks very much.

Operator: This concludes today’s conference. You may now disconnect your lines. Enjoy the rest of your day.